ASK any real estate agent working with retirees in Queensland and you’ll hear a familiar refrain: older Queenslanders want to downsize, but the financial hit of stamp duty – on top of rising living costs – is stopping many from making the move.
What should be a straightforward transition to a smaller, more manageable home is becoming financially out of reach.
For working-age buyers, stamp duty is a painful but often manageable cost, absorbed over time through regular income. But for retirees relying on superannuation or the age pension, it can be a deal-breaker. A sudden $40,000-$80,000 tax bill can wipe out years of savings and derail plans to relocate to a retirement
village or low-maintenance home. Add to that the costs involved in selling – marketing, legal fees, moving expenses – and the barrier becomes even higher.
The challenge only intensifies once retirees begin considering the ongoing costs of retirement living. Lifestyle villages, land-lease communities and over-50s estates typically involve entry fees, monthly site charges, service fees and, in many cases, exit fees.
While these are part of the business model, they can quickly accumulate. For seniors on fixed incomes, every dollar matters, and the combined cost burden leaves many feeling financially stuck.
Compounding the issue is a chronic shortage of appropriate downsizer housing across Queensland. Low-maintenance, accessible, well-located homes are in limited supply, particularly in high-demand areas like the Redlands. Many retirees spend months searching for something affordable and practical, only to find few suitable options.
Here in the Redlands, where the population is ageing faster than most of Queensland, these concerns are raised weekly at open homes and in family consultations.
Many older residents want to preserve their savings to support children or grandchildren entering the housing market, or simply to ensure they can leave a legacy.
Some situations are genuinely heartbreaking, with families under pressure while ideal housing remains out of reach.
One support measure already available is the federal Downsizer Contribution. Australians aged 55 or older can contribute up to $300,000 from the sale of their home into their superannuation.
Although it doesn’t count towards the standard non-concessional cap, it does contribute to the transfer balance cap and may affect age-pension eligibility, so independent financial advice is essential.
Full eligibility criteria are available on the Australian Taxation Office website.
